According to the reports, the restaurants in Namakkal, Tamil Nadu, have stopped accepting food orders through online delivery platforms like Swiggy and Zomato from Tuesday, July 1.

Following a dispute over commission charges, the restaurant owners announced on July 1 that they would stop supplying food to the online food delivery platforms. In addition, the restaurants also cancelled deliveries for customers who had already placed the orders online.

According to the reports, “On June 23, an emergency meeting was held by the Town and Taluk Hotels and Bakery Owners Association, led by President M Ramkumar, where the members raised concerns about hidden costs added by food aggregators, such as advertising fees, which reduce restaurant profits.

Association secretary Arulkumaran stated, “The platforms like Swiggy and Zomato charge different commission rates to different restaurants. In Namakkal taluk alone, 85 eateries are involved in online sales, resulting in daily online food transactions worth Rs 10 lakh. The talks with the platforms failed to produce any agreement, leading to an indefinite halt in online orders.

 

The restaurants are paid only after a week for each sale, which is putting financial pressure on business owners.”

 

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Swiggy and Zomato are two of India's leading online food delivery platforms, revolutionizing food delivery. Both companies offer a convenient app-based service that connects users with a wide range of restaurants, allowing them to browse menus, place orders, and get food delivered to their doorstep.

Swiggy, known for its fast delivery and extensive logistics network, and Zomato, which also provides restaurant reviews and dining recommendations, have been key players in transforming the Indian food delivery landscape.